MyECheck, Inc. (fka MYEC)

[Hierophant]

Dear MyECheck Shareholders:

April 14, 2016
Re: Annual Report
All of us at MyECheck thank our long term shareholders, we are very excited about the technology we own and the opportunities we are exploiting. Although we did not execute our 2015 business plan as forecast, critically important progress was made and we are still on course and committed to the success of all our projects. I hope this letter will provide more insight into the events of the past year, the current status of our multiple business lines, and our plan for 2016 and beyond.
in April of 2015, we announced that Boss Tech Support was live on the MyECheck system, they processed for a short period of time and then we mutually decided to end the relationship due to risk concerns. We also announced that NXR Global was live on the MyECheck system, they continue to process on our system, they are very small but growing and submit around 100 transactions per month.
In May, MyECheck announced it had acquired Seergate for stock. The Seergate platform was fully integrated with MyECheck and adds global electronic banking and payment capabilities, including:
- Virtual bank accounts with sub-account creation and management;
- Point-of-sale, internet, mobile, ATM, social network and other commerce systems;
- Automated billing, invoicing and payments for business;
- Refunds, payouts and bank account push transactions;
- Multiple layers of authentication and fraud controls;
The acquisition of the Seergate platform enabled MyECheck to operate a closed loop payment system such as eMobile Pay independent of third party software platforms.
We also reported that we had entered into a partnership with Avidia Bank to provide banking and account services for both MyECheck customers, and eMobile Pay, our new mobile payment app. We successfully completed technical integration and testing and began revenue generating operations with the bank.
In July, MyECheck launched a basic version of eMobile Pay, a revolutionary new mobile payment system. eMobile is a software only commerce solution requiring no special hardware that can be adopted by anyone simply by downloading and registering the app from Google or Apple stores. The benefits of the system are faster, safer, lower cost and more convenient payments. Our plan is to enhance the system with more automation and fraud protection and relaunch alongside a national marketing, sales and distribution plan in 2016.
In August, MyECheck began wholesale processing for PacNet Services, a payment services provider. Currently, PacNet is MyECheck’s largest customer in terms of number of transactions processed monthly and revenue. Our largest customer in terms of dollars processed is Simplifile.
In September we reported we had signed a deal with TradeRocket, an innovative new B2B invoicing and payment platform. In order to provide the services, we needed to develop some additional software. We made a significant investment in the partnership based upon reports of a larger government account that has not yet materialized. As of this date we have completed development and testing of the new software and capabilities, are waiting for TradeRocket to begin processing on the system.
We also entered into an agreement to provide services to Charleston Enterprises for their iProp rent payment and property management portal. They are now live on the system transaction volume is very low however they expect to ramp up considerably during 2016.
We also became a fully reporting public company, and up-listed from OTC: Pink to OTC: QB, a more senior marketplace for our stock that will be beneficial to us.
Subsequent to 2015, we have signed and launched government kiosk payments through General Payment Systems, and multiple customers with Receive Pay, both accounts are currently processing transactions on our system and are growing.
We sued Zipmark for patent infringement and breach of contract, we ultimately entered into a settlement agreement with Zipmark, and signed them to a patent license agreement. The specific terms of the license such as revenue are ordered confidential, but this is very significant for us because they became a licensee of ours and pay us a small fee for each electronic check transaction they process. The outcome also sets a precedent for other processors that may be knowingly, or un-knowingly, infringing upon the rights of our patented technology.
We incurred some additional debt by entering into several convertible notes. Our plan is to repay as much of this debt as we can before it is converted into stock., and although we believe we will be able to repay the majority of the debt, there are no assurances that we will be able to repay the debt on time and, if not, the debt may be converted into stock and sold into the market.
We have reduced our expenses to what we believe is the lowest possible point in order to minimize our cash needs until our revenue can support our operations and growth.
We plan to spin off GreenPay in 2016, we are looking for a needed bank partner. In the interim we will be delivering beta apps to MJ SafePay and Itonis so that they will be fully functional once a bank can be integrated.
We do not at this time have any additional update on the lawsuits we have pending.
The following table represents our transaction volume on our check engine, this does not include Africa, or other transactions or revenue sources. Although it is less than we expected for 2015, we have consistent growth that I believe demonstrates the value and viability of our services.

When we acquired Seergate in 2015, Seergate had a Memorandum of Understanding (“MOU”) with a company in Africa to facilitate the licensing of our software to banks in Africa. We have recently entered into a definitive licensing agreement with that licensee in Africa. The licensee has sub-licensed the software to a major international bank based in Africa. Due to confidentiality agreements, we are unable to publically disclose the names of the licensee or sub-licensed bank at this time until authorized to do so by the sub-licensee.
We believe the potential to generate revenue for our services is greater with our licensee in African than it is with eMobile in the US, therefore we allowed Africa to prioritize our software development. The opportunity cost for us was the completion of the planned enhancements to eMobile. Unfortunately, the development of the product for the Africa sub-licensee has continued well beyond original expectations as the size and scope of the project has continued to grow, which of course is good news, just not for the short term stock price. The sub-licensee intends to publically launch and announce the services soon, until then we continue to work on testing and enhancing the system for them. The system will be fully launched and announced in the near future, and I believe it will be very successful in terms of enhancing and enabling commerce for the people of Africa, and generate significate revenue for MyECheck shareholders.
We also believe eMobile will be very successful once full automation development is completed. We have finished plug-ins to enable eMobile to work seamlessly with the most popular web shopping carts, so there is a large potential user base that can easily adopt and use the system.
Thank you for your trust and patience as we build our company.
Sincerely,
Edward R Starrs


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